The decision to study business administration is generally regarded as a savvy financial decision. Sixty-two percent of MBA candidates in 2012 had job offers awaiting them after graduation according to US News & World’s Reports study on education.
It doesn’t appear that how an individual obtained their degree is as important as their specialization. Individuals in part-time and “Executive” MBA programs experienced increased recruitment equal to the numbers being seen during the high of 2001. For those attending school full-time, the numbers were not quite as stellar, but still promising. Recruitment was skewed towards those with an interest in manufacturing management and accounting over other fields of study. Probably fueled by the dollar’s weakness, many companies want to bring manufacturing jobs back to the United States. Not only will this movement save on transportation and fuel costs, it reduces the cost of capital tied up in the large inventory buys necessitated by offshore production.
Because of the production and shipping time, most companies that manufacture in China buy 6 months supply to prevent running out of stock. This ties their capital up in inventory and, financing costs, rather than in day-to-day demand generation. It also leads to the need to suddenly dump product for quick cash. Manufacturing in the US eliminates that problem. With the current economic environment, the weak dollar and the difficulties of managing foreign production, more and more companies will probably elect to produce product here. A direct effect of these decisions is the sudden growth in the hire of business majors with manufacturing backgrounds.
According to the Graduate Management Admission Council’s (GMAC) 2012 survey of employers, “More companies plan to hire recent MBAs in 2012 (79%) “ than did in 2011 (72%). Companies report that they expect to increase the number of new hires per firm to 17 on average.
These reporting companies, when analyzed, yielded the following data. The changes in hiring weren’t among multinationals, it is smaller companies with fewer than 1,000 employees that are doing the hiring. They are particularly interested in MBAs and graduates with specialized business master’s degrees. Another appealing degree type is the Master of Accounting particularly in the the Asia-Pacific region. Companies hiring individuals with Masters of Accounting rose significantly in the Asia-Pacific arena. Companies from that region increased their hires from graduates is 54 percent of new hires, up from 38 percent in 2011.
The GMAC survey is a snapshot of the job outlook for recent business graduate students. It provides a picture of the 2012 employment landscape. The survey also reflects the demand for master’s graduates, the current employment planning and hiring practices. Collected during February of 2012, this data comprises 800 companies in 40 countries worldwide. US respondents are from firms in 37 states plus the District of Columbia.
The primary engine for job growth these days is small business according to Bloomberg. Increasingly, those businesses are hiring MBAs as a means to sustain their growth. So, whether the plan is to work for a multinational or a small business, an MBA in business administration, particularly manufacturing is a safe bet for future employability.